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Samsung to announce new $ 17 billion advanced chip factory in Texas (report)

Samsung is expected to officially announce a new advanced chip manufacturing plant in Texas later today, which would cost around $ 17 billion and could create 1,800 jobs. The Wall Street Journal reports. The new plant would be located in the town of Taylor, about 30 miles from Austin, where Samsung has an existing facility. The new site is approximately 1,200 acres in size, making it larger than the Samsung plant in Austin, the WSJ Remarks.

The announcement could come as early as 5 p.m. local time today when Governor Greg Abbott is due to make an “economic announcement.” However, the factory is not expected to start producing chips until the end of 2024, according to previous statements. Eventually, Samsung is expected to start using the new factory to produce processors, for its own uses and for use in products from other companies.

The town of Taylor also offered Samsung incentives to locate its factory there, which would represent tax breaks of over 90% for the first ten years, the WSJ Remarks.

Samsung is a giant in the memory chip making game, but it will likely use the Taylor factory to make advanced chips for other companies based on their designs. Previous reports have indicated that this new plant could produce chips as advanced as 3nm. Samsung has already produced chips for companies like Qualcomm and Nvidia.

The company declined to comment on WSJ on its report, noting only that “a final decision has not yet been made regarding the location”.

The expansion comes as the global semiconductor shortage continues to cause major problems for everyone from console makers to automakers. This is a situation that is unlikely to ease until at least 2023, according to recent comments from Intel CEO Pat Gelsinger.

In response, the Biden administration is trying to boost chip production in the United States, reducing the potential for supply chain disruption and reversing the country’s declining share of manufacturing over the past decades. The Senate recently approved $ 52 billion in subsidies for new chip manufacturing plants, although the CHIPS law has yet to be passed by the House of Representatives, according to Bloomberg.

The chipmaking industry has planned increases in production capacity, but many of the new factories won’t be online anytime soon. TSMC and Sony’s new $ 7 billion chip plant in Japan will not begin production until late 2024, the same year as TSMC’s new $ 12 billion plant in Arizona. TSMC has announced plans to invest more than $ 100 billion in new chip factories over the next three years, while Intel plans to spend a similar amount over the next decade on investments in the United States and in Europe.

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